Barkerville Gold Mns Ltd BGMZF

RE: RE: Who ever posted the cash positions of the

[justlikethat]

I'm thinking more debt/equity. The cost of debt capital is very low even for the lowest quality credit (which is a problem in itself globally if you think about it). This is unsecured too. Debt financing is just too cheap right now. The bigger majors have adequate cash flow to make this happen very easily.

Raising the funds is not a problem. The only point I was trying to make was that cash on the BS is not the metric you want to use to determine whether a suitor can afford an acquisition. The tax element will by all means play a roll as well. Not sure what that will be though.

Personally, I think the sector will go lower before it gets better and acquisitions start heating up. Until someone pulls the trigger on a property, there's not reason to rush in and pay fair value. When the time comes, they will buy assets for pennies on the dollar. That is how business is done.